It’s important to register any agreement you come to with your former partner.
You may have reached agreement with your partner and are wondering if it’s really necessary to register it with the court. Strictly it’s not, but it’s definitely in your best interest to consider registering the agreement. While things might be fine between you and your partner now, they might not remain that way forever.
Oral agreements, or ones not written up formally, are often not enforceable. This means if someone changes their mind down the track, there is little recourse. While you might agree now that neither of you will make a claim on the other person’s assets, people change their minds. Without a properly documented agreement a court may not recognise that agreement, meaning you have to start all over again to reach a new agreement. This is not only a stressful and exhausting exercise, it’s a costly exercise.
It’s not just the court who mightn’t recognise the agreement. Third parties, like lenders or superannuation trustees, will require binding Consent Orders or Agreements when refinancing debts or splitting funds. The costs of getting an order are often off-set by savings in stamp duty that would otherwise be payable on transfers. So not only can it save you personal and logistics headaches, it can end up saving you money, too.